MKP Capital Management is a diversified investment manager. Since its founding in 1995, the firm has operated with a long-term approach to investing. Each of the firm’s discretionary global macro, credit, and fixed-income relative value strategies share the objective of producing high risk-adjusted returns over the long term. MKP believes that integrity, transparency, and alignment of interests are essential, uncompromising parts of our business model.
In 1996, MKP launched its first fund, a fixed-income relative value strategy with $18 million. The strategy focused primarily on U.S. rates and Agency mortgages. A drawdown in 1998 forced the early and quick learning of important lessons, some of which many in the industry wouldn’t learn until a decade later during the global financial crisis. The founders learned the importance of diversification, both for the strategies they managed and for safeguarding their clients’ assets. These lessons proved to be invaluable and prepared the firm to succeed through the global financial crisis of 2007-2008.
In 1999, MKP expanded further into fixed-income markets with the launch of our credit strategy. Evolving to meet market opportunities in the U.S. and Europe, our credit business continues to invest today. Only two years later in 2001, MKP launched a global fixed-income macro strategy to capitalize on the increasingly global and interconnected nature of financial markets. During the period around these two fund launches, we also registered as an investment adviser with the SEC and hired our first internal counsel.
In 2006, it wasn’t only the investment environment that presented challenges. At the end of that year Eric Keiter, the “K’ in MKP, retired from the firm and the industry. The first retirement of one of our founders led to a series of institutional developments at MKP, including a renewed sense of purpose that set the stage for what the firm would look like over the next decade and today. The firm named its first independent Chief Risk Officer and appointed him as a member of a newly established Investment Committee.
In addition, MKP identified and set a commitment to operate by the firm’s six core values, including an emphasis on a collaborative and transparent work process and environment. We institutionalized our research and risk management capabilities, and we prioritized the development of a robust infrastructure, including a proprietary risk and portfolio management system, RCPM®, which embodies our risk and investment philosophy.
Our disciplined approach to risk management proved to be a valuable component of our investment process. We believe this set us apart from our peers then, and continues to do so today. The consequences of our earlier decisions and actions became clear to us and to the markets during the global financial crisis. We did not suspend redemptions nor gate our investors. Our long-term approach put us in a position of strength.
Consistent with the founders’ desire to set MKP on a course for true long-term success, in 2007 the firm elevated two senior executives to the role of Principal, demonstrating that generational ownership transfer can happen smoothly and successfully. This was followed five years later by the retirement of Chip Perkins, the “P” in MKP. Subsequently, new Principals have been appointed and others have moved on, and in 2013, the firm sold a minority stake to a fund managed by Dyal Capital Partners and its affiliates. Our transitions demonstrate the founding concept of building an enduring firm that not only survives its founders, but is successful after them, a rarity in this industry.
Today, by operating discretionary global macro, credit, and fixed-income relative value strategies, we believe MKP’s investors benefit from better insights across each strategy as well as from the depth of our expertise within each strategy. Throughout the firm’s history, MKP has believed in transparency to our clients, serving their needs first and offering solutions to their challenges. This started with traditional commingled fund accounts, and then evolved to include an opportunistic short credit strategy during the financial crisis. More recently we have provided separate accounts and funds of one, each with custom client guidelines. We offer socially responsible, FX-hedged, multiple volatility profiles, and other custom and limited exposure investment solutions. We continue to look for new ways to serve our clients.
We believe this approach has allowed us to best focus on our clients’ needs, performance, and the business. Over twenty years in, we look forward to continuing our partnership with clients far into the future.
Mr. McMahon, a founder of MKP Capital Management, L.L.C., serves as Chief Investment Officer and is a member of the Investment Committee, which has ultimate oversight over all of the firm’s investment activities. Under Mr. McMahon’s leadership, MKP has grown into a multi-billion dollar diversified alternatives manager that invests across a broad spectrum of global markets including rates, currencies, credit, equities and commodities.
Prior to founding MKP in 1995, Mr. McMahon worked at Salomon Brothers Inc. (1985-1994) where he was a Partner and a Managing Director in the Fixed Income Capital Markets Division. His responsibilities included trading, risk management, structured finance and the quantitative analysis of complex fixed income and mortgage derivatives. He was also responsible for directing the development and implementation of quantitative analytics to accurately assess the risk exposure of the various trading desks.
Mr. McMahon serves on the Board of Directors for the Els for Autism Foundation, whose overarching mission is to help people on the autism spectrum fulfill their potential to lead positive, productive and rewarding lives. He also serves on the Board of Directors for the Each One Counts Foundation, which raises funds and provides grant funding to programs and individuals dedicated to easing the physical and emotional suffering of children with terminal or chronic illness. Additionally, he serves on the Board of Trustees for Villanova University. Mr. McMahon has a B.S. in Business Administration with a concentration in Finance from Villanova University (1985).
Mr. Lightburn serves as Chief Executive Officer of MKP, bringing more than 25 years’ experience in financial markets to the role. He is a Principal of the firm and is a member of the Investment Committee. Prior to being named CEO, Mr. Lightburn led all of MKP’s global rates and Agency MBS trading strategies at the firm. Before he joined MKP in 2008, Mr. Lightburn worked for three years as a Managing Director at HSBC Securities, where he managed the prime mortgage trading business. Prior to HSBC, Mr. Lightburn worked for 15 years at Goldman Sachs. When he left the firm in 2004, Mr. Lightburn was a Managing Director and Co-Head of the Mortgage Liquid Products trading group.
Mr. Lightburn received a B.S. in Mechanical Engineering from the Massachusetts Institute of Technology (1989).
Mr. DeVita is a Principal of the firm and serves as Chief Financial Officer and Chief Operating Officer. Prior to joining MKP in 2001, Mr. DeVita worked for six years at the University of Virginia Law School Foundation in Charlottesville, Virginia, where he was Associate Executive Director and Director of Operations. Prior to the Law School Foundation, Mr. DeVita spent five years as an Associate at Morgan, Lewis & Bockius in Philadelphia, PA, where he practiced in the area of corporate and securities law. Prior to attending law school in 1987, Mr. DeVita worked on the audit staff for Price Waterhouse in New York City, where he earned his CPA.
Mr. DeVita received a J.D. from the University of Virginia School of Law (1990). He earned a B.S. in Business Administration, magna cum laude, with a concentration in Finance from Villanova University (1985) where he also received the Excellence in Finance Award, given to the most outstanding graduate in finance. He is a member of the bars of the states of New Jersey and Pennsylvania.
Mr. Lee is a Principal of the firm and serves as Chief Risk Officer. He is a member of the Investment Committee, which has ultimate oversight over all of the firm’s investment activities. Before taking on the role of Chief Risk Officer in late 2006, Mr. Lee served as a Portfolio Manager focusing on both prepayment and credit sensitive assets in the firm’s hedge funds. Prior to joining MKP in 1997, Mr. Lee worked for six years at Salomon Brothers Inc. in the Mortgage Securities Department. From 1993 to 1996, he was a mortgage derivatives strategist whose responsibilities included analyzing and valuing securities and advising the sales force and clients on trade ideas. Prior to this role, Mr. Lee spent two and a half years as a Vice President responsible for the development of mortgage derivative risk management systems and proprietary trading and pricing models. Prior to Salomon Brothers, Mr. Lee worked as a senior programming analyst responsible for developing CMO and mortgage analytics at Merrill Lynch from 1988 to 1991.
Mr. Lee received a B.S. in Finance from the Massachusetts Institute of Technology (1988).
Discretionary global macro strategy that uses a top-down fundamental approach to identify and exploit economic and financial imbalances in asset markets to produce high risk-adjusted returns over long term. Our underlying strategies include Rates, Currencies, Agency Mortgages, Corporate Credit and Equities.
Long-short diversified credit strategy emphasizing bottom-up fundamental analysis informed by a top-down macro view. Expertise across the capital structure and asset classes. Our underlying strategies include Agency Mortgages, Corporate Credit and Structured Credit (CLO, CMBS and RMBS).
Fixed-Income relative value and relative value-style trading with a unique ability to view opportunities through a top-down macro lens and bottom-up strategy specialists. Our underlying strategies include Agency Mortgages, Corporate Credit and Global Rates.
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